The Securities Appellate Tribunal (SAT) on Wednesday refused to grant any further relief to Bajaj Finance and other banks in the matter of Karvy Stock Broking. SAT ruled that the banks' plea to get securities already transferred by NSDL to clients' accounts is ‘untenable’.
Earlier, Bajaj Finance, ICICI Bank, HDFC Bank and IndusInd Bank had moved SAT seeking directions against Securities & Exchange Board of India (SEBI) and National Securities Depository Ltd (NSDL) for securing shares pledged by Karvy to them.
The SAT on Wednesday directed banks to approach SEBI by December 6 regarding their plea and asked SEBI to pass an order in the matter by December 12.
Lenders had objected to NSDL’s move as securities had been pledged by Karvy to secure loans from them.
Following SEBI's order, NSDL has already transferred back stocks of nearly 83,000 clients which were illegally transferred by Karvy into its own account.
On December 3, in an interim relief, SAT had ordered NSDL to not transfer any more shares to Karvy clients.
Karvy has taken loans of Rs 600 crore by pledging securities of around Rs 2,300 crore of 95,000 clients with lenders, including Bajaj Finance, HDFC Bank, ICICI Bank, IndusInd Bank.
First Published: Dec 4, 2019 2:30 PM IST
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